the OTC .today

Monday, October 17, 2011
Today's PUMPs & dumpS

Stevia Is Not As Sweet As Advertised

Several touts have begun a Pump & Dump campaign on behalf of insiders of Stevia Corp (STEV).  The company's name cleverly could confuse one into believing that these guys exclusively manufacture the relatively new (in America) and lesser known sweetener, stevia. Not so. Stevia is actually a class of herbs and shrubs in the sunflower family, and has been used as a sugar substitute in Japan for decades.  On the other hand STEV is a grower of stevia plants, that went public through a recent reverse takeover of a bulletin board shell.  And boy, is it an expensive stock.  The company has, at last report, total assets of $350K in the bank, all of which came from convertible debentures it issued, so it also owes that money. STEV has no revenues but plenty of operating losses and a market cap of $55 million. Even if you believe this story, we'd pass until you can pick up this stock in the pennies.  And unless something changes drastically on the balance sheet, you will have that chance.

With no ongoing touting of Seven Arts Entertainment (SAPX) evident as of yet today, we expect share prices to come back down to Earth, at least until the touts continue their effort to help try and save this NASDAQ listing.  While the company has some time to do so, we don't think they will fare any better than the several "B" entertainment production companies before them.

Speaking of "B" entertainment, the touts are re-energizing their campaign on Takedown Entertainment (TKDN), a producer of mixed martial arts programming, which at last report had $5K in assets assets, $600K in debt and no revenues.  To make matters worse, they somehow managed to lose $450K in the last nine month period for which they reported.  And yet somehow, this company is supposedly worth $40 million, but we're not sure why.  The big, furiously waving red flag is that the company is now overdue for a set of newer quarterly financials, and as is usually the case, we think that this push by the touts is in advance of some bad news forthcoming.  Do not pass GO, do not collect $200.

There's a new and obvious Pump & Dump on RMD Tech, Inc. (RMDT), a company that has not issued a press release since May and yet has suddenly become the object of love from a couple of touts, including MicroCapRunners.com, which produced an elaborate email and yet expects us to believe that it has not been compensated.  Uh huh. So out of the blue, these guys are touting a company that has said nothing in 5 months.  Sure.  In the meantime, the purported manufacture of small electric vehicles, largely made out recycled electronic parts, has not filed financials in 3 1/2 years, so we have no idea if this company is even worth its current $250K market cap  You would have to believe that no new shares were issued since that report.  Yeah, good luck with that.

We have to laugh at an email issued by tout, PennyStockVideos.com last Thursday, in which it attacked the valuation of Raystream, Inc. (RAYS) and referred to the buying of shares as gambling.  No kidding?  Really?  Listening to scummy stock pimps and buying a piece of garbage on the hope that you are not at the top of the pyramid scheme is gambling?  WOW!  What a concept!  We challenge PennyStockVideos to identify the last piece of garbage that they touted that didn't cause significant losses to the public and cite AAGC, TKDN, and FLKI as examples.  Incidentally, as we've said in the past, we agree that RAYS is a bad investment.  We also wonder if PennyStockVideos would have been singing a different tune if the company had ponied up a few dollars for them to tout the stock.

The DTC has added more issuers to the list of those it has removed from the automatic settlement system they facilitate, including those we have previously identified as subjects of Pumps & Dump campaigns, AGHD, and ADAC.  This may mean that purchasers of these stocks will have to wait 3 days before selling them and that the settlement of these trades may require actual certificates.  Such an order is severe and suggests that there is a belief that unauthorized shares have been trading.  As trade for trade settlements are cumbersome and require an intensive accounting procedure, many brokers will not permit the buying of these stocks or will charge higher brokerage fees for the trades, thereby possibly effecting the liquidity. This is often a warning sign that something is afoot and the best idea is to stay away!

TOLD YOU SO!

On May 23, 2011, we issued an advisory on Southern Home Medical Equipment (SHOM) in which we picked apart the company for (among other things) announcing a merger without announcing the merger candidate and then prognosticating $7 million in revenues as a direct result of the merger.  Calling SHOM a SHAM, we intimated that the secrecy behind this giant this merger showed that it was announced purely for the purpose of investor stock dumping and that the merger would never happen.  SHOM responded with an update to shareholders, in which it tore apart our advisory and attacked our credibility.

On October 13, 2011, 5 months after the announcement of the merger with great fanfare, the company quietly revealed that it was suspending the merger.  That revelation was cleverly cloaked within a press release announcing revenues, with far less oomph than the initial announcement of the unconsummated merger.  SHOM share prices have fallen more than 90% since the Pump & Dump campaign, predicated on the merger announcement and a barrage of press releases, began.  In the meantime, the number of common shares issued and outstanding has increased 70%.  The number of authorized shares has quadrupled, indicating that there is much more dilution to come.

Since Friday's close: 

WallStreetGrand.com has been promoting SPOW in conjunction with an ongoing Pump & Dump campaign.

EmailStockPicks.com has been promoting HBWO in conjunction with a new promotion.

TheGreenBaron.com has been promoting FRDM in conjunction with a new promotion.

DrStockPick.com and at least 5 other paid touts have been promoting ASTC in conjunction with a new promotion.

TheStockSharks.com has been promoting CRYO in conjunction with a new promotion.

MicroCapRunners.com and at least 2 other paid touts have been promoting RMDT in conjunction with a new promotion.

QualityStocks.net has been promoting PPTF in conjunction with a new promotion.

ChartPoppers.com and at least 3 other paid touts have been promoting STEV in conjunction with a new Pump & Dump campaign.

QualityOTC.com and at least 2 other paid touts have been promoting SGAE in conjunction with an ongoing Pump & Dump campaign.

365NewsMedia.com and at least 2 other paid touts have been promoting MSMY in conjunction with an ongoing Pump & Dump campaign.

OtcMarketBulls.com and at least 1 other paid tout have been promoting ECIT in conjunction with an ongoing Pump & Dump campaign.

GreenGainers.com has been promoting EMBA in conjunction with an ongoing Pump & Dump campaign.

StockRod.com and at least 1 other paid tout have been promoting DGHG in conjunction with an ongoing Pump & Dump campaign.

PennyStockNewsletter.info has been promoting FLRE in conjunction with an ongoing Pump & Dump campaign. 

PennyStockFinder.com has been promoting TKDN in conjunction with an ongoing Pump & Dump campaign. 

StockGuru.com has been promoting NBRI in conjunction with an ongoing, long term promotion. 

BedfordReport.com has been promoting NYXO in conjunction with an ongoing, long term Pump & Dump campaign. 

StockProfessors.com has been promoting LSTG in conjunction with an ongoing, long term Pump & Dump campaign. 

JuicyStockPicks.com has been promoting ITNS in conjunction with an ongoing Pump & Dump campaign.

MicroCapRunners.com has been promoting RAYS in conjunction with an ongoing Pump & Dump campaign.

StockHaven.com and at least 8 other paid touts have been promoting AERN in conjunction with an ongoing Pump & Dump campaign. 

Xtremepicks.com and at least 1 other paid tout have been promoting IFHR in conjunction with an ongoing, Pump & Dump campaign.

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